Rithm Capital Corp. $RITM Shares Acquired by Cetera Investment Advisers

Key Points

• Cetera Investment Advisers increased its Rithm Capital stake by 26.9% in the first quarter, holding 1.45 million shares worth approximately $13.7 million. Institutional investors and hedge funds collectively own 44.92% of the company.
• Rithm Capital reported quarterly adjusted EPS of $0.60, beating the $0.50 consensus, although revenue of $1.28 billion fell short of expectations. Asset-management growth and higher origination volumes supported results.
• The company declared a $0.25 quarterly dividend, equivalent to a 10.0% annualized yield, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $13.20 versus shares trading near $9.96.

Cetera Investment Advisers lifted its holdings in shares of Rithm Capital Corp. (NYSE:RITM - Free Report) by 26.9% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 1,447,552 shares of the real estate investment trust's stock after buying an additional 306,615 shares during the period. Cetera Investment Advisers owned 0.26% of Rithm Capital worth $13,723,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. WINTON GROUP Ltd acquired a new stake in shares of Rithm Capital during the 4th quarter worth approximately $2,007,000. Massachusetts Financial Services Co. MA acquired a new position in Rithm Capital during the 4th quarter valued at approximately $1,492,000. UBS Group AG boosted its position in Rithm Capital by 4.0% during the 4th quarter. UBS Group AG now owns 3,869,113 shares of the real estate investment trust's stock valued at $42,173,000 after purchasing an additional 150,291 shares during the period. Independent Financial Group LLC bought a new position in Rithm Capital during the 1st quarter worth $1,061,000. Finally, Norges Bank bought a new position in Rithm Capital during the 4th quarter worth $77,067,000. Institutional investors and hedge funds own 44.92% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on RITM. Keefe, Bruyette & Woods dropped their target price on Rithm Capital from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday, May 1st. Citizens Jmp boosted their price target on shares of Rithm Capital from $12.50 to $13.50 and gave the company a "market outperform" rating in a report on Wednesday, May 20th. Wall Street Zen lowered shares of Rithm Capital from a "hold" rating to a "sell" rating in a research report on Monday, July 6th. Compass Point assumed coverage on shares of Rithm Capital in a report on Monday, June 8th. They issued a "buy" rating and a $14.00 price objective on the stock. Finally, Weiss Ratings upgraded shares of Rithm Capital from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday. Ten equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, Rithm Capital presently has an average rating of "Moderate Buy" and a consensus target price of $13.20.

Rithm Capital Stock Performance

Shares of RITM stock opened at $9.96 on Thursday. Rithm Capital Corp. has a 12-month low of $8.43 and a 12-month high of $12.74. The firm has a market capitalization of $5.56 billion, a price-to-earnings ratio of 16.61 and a beta of 1.14. The business has a 50 day simple moving average of $9.24 and a 200 day simple moving average of $9.85. The company has a debt-to-equity ratio of 2.19, a current ratio of 0.90 and a quick ratio of 1.28.

Rithm Capital (NYSE:RITM - Get Free Report) last posted its earnings results on Tuesday, July 28th. The real estate investment trust reported $0.60 EPS for the quarter, beating the consensus estimate of $0.50 by $0.10. The firm had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.43 billion. Rithm Capital had a return on equity of 19.86% and a net margin of 9.20%. On average, equities research analysts anticipate that Rithm Capital Corp. will post 2.23 EPS for the current year.

Rithm Capital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 2nd will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $1.00 annualized dividend and a dividend yield of 10.0%. Rithm Capital's dividend payout ratio is presently 91.74%.

Key Stories Impacting Rithm Capital

Here are the key news stories impacting Rithm Capital this week:

• Positive Sentiment: Adjusted earnings beat expectations: Rithm reported second-quarter earnings available for distribution of $0.60 per share, versus the $0.50 analyst consensus and $0.54 a year earlier. The result was supported by stronger asset-management revenue and higher origination volumes. Rithm Capital Q2 Earnings Beat Estimates, Revenues Up Year over Year
• Positive Sentiment: Asset-management momentum continued: Rithm Asset Management’s assets under management rose to approximately $61 billion from $59 billion in the first quarter. Management highlighted fee-based growth, while Genesis Capital’s origination volume increased 52% year over year to $1.9 billion. Rithm Capital Earnings Review
• Positive Sentiment: Mortgage securitization activity provides an additional catalyst: KBRA assigned preliminary ratings to 10 classes of notes in a $494.5 million non-prime residential mortgage-backed securities transaction sponsored by Rithm. The deal highlights continued activity across the company’s mortgage platform and may support capital recycling. KBRA Assigns Preliminary Ratings to NRMLT 2026-NQM9
• Positive Sentiment: Income and dividend appeal remain prominent: The company reported a 19.48% return on equity, $12.33 in book value per common share, and a $0.25 quarterly dividend. Analysts cited Rithm’s potentially attractive valuation and dividend yield, while brokerages have set an average price target of $13.20. Brokerages Set Rithm Capital Target Price
• Neutral Sentiment: Analyst views are mixed: Coverage indicates that analysts remain divided on Rithm’s outlook, limiting the potential for a broad-based reassessment of the shares. Analysts Conflicted on Rithm Capital
• Negative Sentiment: Revenue and GAAP profitability were weaker: Quarterly revenue of $1.28 billion missed the $1.43 billion consensus, while GAAP net income attributable to common stockholders was only $20.2 million, or $0.04 per share. Weaker servicing revenue and higher expenses were reported as offsets to the adjusted earnings beat.

Insider Activity at Rithm Capital

In other news, Director David Saltzman sold 80,922 shares of the firm's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $9.25, for a total transaction of $748,528.50. Following the transaction, the director directly owned 44,248 shares of the company's stock, valued at approximately $409,294. This trade represents a 64.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.57% of the company's stock.

Rithm Capital Profile

Rithm Capital Corporation is a specialty finance company that originates, acquires and manages structured credit investments collateralized by real estate assets in the United States. The company focuses primarily on senior floating-rate loans secured by multifamily, commercial, industrial and single-family rental properties, aiming to deliver attractive risk-adjusted yields through a diversified portfolio of floating-rate real estate debt.

In addition to senior loans, Rithm Capital invests in residential mortgage-backed securities, including agency and non-agency pools, as well as other real estate-related credit instruments.

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